Bitcoin Price Analysis: Wyckoff Model Indicates $100K Retest Ahead
Bitcoin has experienced a significant decline of 21.40% after reaching nearly $109,300, yet analysts remain hopeful for a bullish trend in 2025. The Wyckoff reaccumulation model suggests a possible retest of the $100,000 mark as Bitcoin navigates its current market phases. While further price drops are anticipated, rebounds from key support levels could signal upward movements toward $100,000.
Bitcoin (BTC) has experienced a notable decline of 21.40% over the past month, following its peak of approximately $109,300. Despite this drop, some market analysts maintain a positive outlook, believing that the upward trend is set to resume in 2025. The Wyckoff reaccumulation model suggests a potential retest of the $100,000 price level.
The Wyckoff reaccumulation model outlines a technical structure characterized by periods of consolidation and accumulation after a significant upward movement. This model consists of nine vital phases: Preliminary Supply (PSY), Buying Climax (BC), Automatic Reaction (AR), Secondary Test (ST), Spring, Test, Last Point of Support (LPS), and the concluding phase, Sign of Strength (SOS). Currently, Bitcoin is in the “Test” phase, aiming to confirm a bullish trend by retesting its low from the Spring phase, approximately $85,950.
In the Test phase, Bitcoin is evaluating its support level to establish a foundation for future gains towards the Last Point of Support, predicted at around $96,780. The model anticipates that once Bitcoin achieves the Sign of Strength phase, a new upward cycle will commence, potentially culminating in a breakout above $100,000. A previous successful pattern observed in August 2024 led to a significant price increase.
Analyst Vijay Boyapati recalls a similar scenario from 2024 where Bitcoin consolidated between $50,000 and $70,000 for an extended period before surging following a major political event. He proposes that Bitcoin is likely to engage in another prolonged consolidation phase prior to a decisive upward movement, asserting that, “the top is not in” yet.
Current Bitcoin price charts indicate further downward movements may occur in the near weeks, as historical corrections have frequently led the price toward the 50-week exponential moving average (EMA), currently at approximately $76,390. This figure correlates with a long-term ascending trendline support initiated in November 2022, suggesting that further corrections could take the price down to $57,690 and even $48,170.
Conversely, a rebound from the interim support zone, situated between $85,000 and $90,000, or from the more definitive support around $76,390, would provide a pathway toward $100,000, aligning with the anticipated Wyckoff LPS target. Investors are reminded that all trading decisions carry inherent risks, necessitating thorough research prior to engaging in market transactions.
In summary, despite recent price declines, analysts are optimistic regarding Bitcoin’s potential to retest the $100,000 level, supported by the Wyckoff reaccumulation model. The current market phase indicates a need for retesting key support levels; however, successful rebounds could facilitate an upward trajectory. As always, prospective investors should conduct individual research to navigate the inherent risks associated with cryptocurrency trading.
Original Source: www.tradingview.com
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